[size=13pt]166 indigenous firms to invest N1.5tn in economy[/size]

About 166 indigenous firms in the non-oil sector have concluded plans to invest N1.5tn in the economy within the next 12 months.


The Minister of Trade and Investment, Mr. Olusegun Aganga, confirmed the development during a meeting with major operators in the agribusiness sector of the economy in Lagos on Tuesday.


He said the fact of the planned investment emerged at the last stakeholders meeting in Lagos between the ministries of Trade and Investment and Foreign Affairs, and industrial stakeholders.


He said the sum, a conservative estimate, was arrived at after an analysis of the survey forms filled by the companies at his maiden meeting with the Organised Private Sector and captains of industry.


Of the amount, the Dangote Group will invest N900bn in the production of fertiliser and petrol-chemicals.


The Nigerian Bottling Company Plc pledged to invest N45bn; Guinness Nigeria Plc, $225m; Odua Investment Company Limited, N37bn; the Chairman, Ikeja Hotels Plc, Mr. Goodie Ibru, $6m; among others.


According to the minister, the manufacturing, real estate, agro-allied and automotive sectors will get N1.06tn, N198.5bn, N67.8bn and N45bn investments respectively, while tourism, trade and commerce, transport and others will make up the rest.


Aganga, who commended indigenous investors for their confidence in the economy, added that the Federal Government was committed to providing the conducive environment to enable the private sector play a pivotal role in the transformation of the country’s economy.


He said that at the end of the workshop on agribusiness, stakeholders would also come out with a road map for the implementation of the Nigerian Agribusiness and Agro-industries Development Initiative.


This, according to him, will be a major step forward in efforts aimed at job creation and economic growth.


On the proposed N1.5tn investment, the minister said, “During our meeting with the OPS, we asked them to fill a survey form to indicate the sectors they want to invest in, and more importantly, the expected investments they intend to bring into that sector going forward. The objective was to know the level of investment we can get from the companies in Nigeria before we talk about Foreign Direct Investments.


“The result of that survey has just been released. It showed that the local companies will invest N1.52tn in the Nigerian economy within the next 12 months. And this is in the non-oil sector alone.”


According to Nigeria’s Vision 2020 document, the country needs to invest N34tn in growth areas in the next four years. Of this, the Federal Government will account for N10tn; states, N9tn; and the private sector (both local and international), N15tn.


The overall macroeconomic target for the medium term is for Nigeria to achieve a target Gross Domestic Product of N50tn ($333bn) by 2013, as well as growth in GDP per capita from $1,075 in 2009 to $2,008.75 by 2013.


“The Federal Government, through the Ministry of Trade and Investment, is fully committed to partnering these companies by removing any barrier that will impede the investment, which will be pro-growth and pro-jobs,” Aganga said.

http://www.punchng.com/Articl.aspx?theartic=Art201108243312135

This is indeed a good one. I think Aganga is now in his area of competence.

Aganga is one of the ministers that i respect alot.I pray this one will work out fine.This country needs development,I mean mass development starting from the local to the private sectors of the economy.

Paper government, please what's new here?

Doesn't anyone see a problem with this? The economy is not being improved, diversified, or strengthened for sustainable growth. Instead it is just the SAME major players increasing their piece of the SAME pie by making it bigger. More fertilizer, beer, and hotels (Is that what the Nigerian economy really needs?). Nija has been acting like a one trick pony for so long that this s*** is just getting old. For Godsake Dangote group alone is investing 900billion out of 1.5trillion. As if that company needs to own anything else. So what exactly is the point of the other 165 firms, to fill up the paper abi?

P.S: For those of you who are going to use this as an opportunity to insult me or put forth arguments with your false optimism by mentioning how things are improving and so on and so forth, just go outside and take a look around you. Forget the statistics and headlines that are fed to the masses by influential people who have something to gain by making people believe that they are working in the "Best interest of Nigeria". Forget the grandiose plans that never come to fruition. Just walk a mile in any direction and OBSERVE what is really going on.

^^^^^^ things are changing with this new government my brother. Believe it

Hope GEJ makes the difference.

ShipIt:

Doesn't anyone see a problem with this? The economy is not being improved, diversified, or strengthened for sustainable growth. Instead it is just the SAME major players increasing their piece of the SAME pie by making it bigger. More fertilizer, beer, and hotels (Is that what the Nigerian economy really needs?). Nija has been acting like a one trick pony for so long that this s*** is just getting old. For Godsake Dangote group alone is investing 900billion out of 1.5trillion. As if that company needs to own anything else. So what exactly is the point of the other 165 firms, to fill up the paper abi?

P.S: For those of you who are going to use this as an opportunity to insult me or put forth arguments with your false optimism by mentioning how things are improving and so on and so forth, just go outside and take a look around you. Forget the statistics and headlines that are fed to the masses by influential people who have something to gain by making people believe that they are working in the "Best interest of Nigeria". Forget the grandiose plans that never come to fruition. Just walk a mile in any direction and OBSERVE what is really going on.  

The N1.52tn is just the existing private sectors investment.

According to Nigeria’s Vision 2020 document, the country needs to invest N34tn in growth areas in the next four years. Of this, the Federal Government will account for N10tn; states, N9tn; and the private sector (both local and international), N15tn.

Hopefully, the N10tn and N9tn that the FG and states collectively chip in over the next four years should go a long way to boost new players, spread the wealth and diversify the economy.

The amounts discussed in the article do not include the staggering investments to diversify our economy from crude oil to gas (gas revolution). Already Delta has got a $16billion investment to build the biggest industrial park in Africa at Koko. $16billion is about 60% of the 2011 budget; its no small beans. Bayelsa and Lagos are also getting similar investments to varying degrees (they just haven't yet kicked off like Delta). So, its all looking good so far; lets keep praying it stays that way. Big things are coming.

I agree these are all paper talk,dreams and more dreams. Let the government start the economic reform by dragging foriegn investment flow like obj's administration. Not with the likes of dangote and co. There are still enough investment that can be lured into nigeria if we put things in place.

innason:

I agree these are all paper talk,dreams and more dreams. Let the government start the economic reform by dragging foriegn investment flow like obj's administration. Not with the likes of dangote and co. There are still enough investment that can be lured into nigeria if we put things in place.

The $16billion in Delta is all foreign.

have they started the building the industrial park? still my point paper work.

Isn't there any plan for small scale enterprenuers who wants to do business? Why must it be all about Foreign and the dangote investors et al? Have we forgotten about Michellin and Cadbury? Luring investors in one thing, keeping them for decades is another. If the cost of doing business is not favourable then this is all just a bunk of joke. GEJ is not my fan but for the sake of the country I pray he succeeds. Problem is you cannot continue to do things in the same old ways and expect to get a different result.

This is super stooory, No b 2day!

paper developments. everything will be derail with corruption. the same stories that we have been told since 1960. If Nigerians suffer to the world then maybe God can reward us with a better place in heaven.

Aganga is deceiving himself. Doesn't he know that regular power supply, very good road network, less government bureaucracy and corruption would jumpstart the economy leading to explosive GDP growths. Nigerians are enterpreneural and can go it alone if only the above points are improved by half

All this trillions,billions n millions.where is that money.pls i need my own cash.

Beaf:

The N1.52tn is just the existing private sectors investment.

Hopefully, the N10tn and N9tn that the FG and states collectively chip in over the next four years should go a long way to boost new players, spread the wealth and diversify the economy.

The amounts discussed in the article do not include the staggering investments to diversify our economy from crude oil to gas (gas revolution). Already Delta has got a $16billion investment to build the biggest industrial park in Africa at Koko. $16billion is about 60% of the 2011 budget; its no small beans. Bayelsa and Lagos are also getting similar investments to varying degrees (they just haven't yet kicked off like Delta). So, its all looking good so far; lets keep praying it stays that way. Big things are coming.

Well said.

Yeske!:

Aganga is deceiving himself. Doesn't he know that regular power supply, very good road network, less government bureaucracy and corruption would jumpstart the economy leading to explosive GDP growths. Nigerians are enterpreneural and can go it alone if only the above points are improved by half

This is the most sense I have heard in response to the article in question. Unless the foundational issues of power and infrastructure are addressed, Nigeria will never achieve any of it's economic goals. Instead we will just remain as that country with potential to be this and that, while we continue to lose the things that make us a proud and sovereign nation. Nigerians do not need much Foreign investment to experience exponential economic growth, we just need the proper environment to do it our own damn selves. Asking for FDI at every turn is the lazy mans road, and is not sustainable in the long run.

In regards to lack of infrastructure and visionary leadership, We Common Nigerian folk are as much to blame as our so called leaders in what we call a government. (well maybe a bit less than the leaders but there is still enough to go round).  
The truth is we as Citizens do not demand governance of a high standard from our leaders, instead we just accept whatever they give us. We are just as fearful of the truth as our leaders.

If I let you bully me today, why shouldn't you think you can get away with bullying me tomorrow?

Great! :-) [img]http://2.s07.flagcounter.com/count/DymW/bg=E6E6E5/txt=E6E6E5/border=E6E6E5/columns=1/maxflags=1/viewers=3/labels=0/[/img]
[img]http://s07.flagcounter.com/count/DymW/bg=E6E6E5/txt=E6E6E5/border=E6E6E5/columns=1/maxflags=1/viewers=3/labels=0/[/img]

marcus1234:

Great! :-) [img]http://2.s07.flagcounter.com/count/DymW/bg=E6E6E5/txt=E6E6E5/border=E6E6E5/columns=1/maxflags=1/viewers=3/labels=0/[/img]
[img]http://s07.flagcounter.com/count/DymW/bg=E6E6E5/txt=E6E6E5/border=E6E6E5/columns=1/maxflags=1/viewers=3/labels=0/[/img]

Really Marcus

Yeske!:

Aganga is deceiving himself. Doesn't he know that regular power supply, very good road network, less government bureaucracy and corruption would jumpstart the economy leading to explosive GDP growths. Nigerians are enterpreneural and can go it alone if only the above points are improved by half

ShipIt:

This is the most sense I have heard in response to the article in question. Unless the foundational issues of power and infrastructure are addressed, Nigeria will never achieve any of it's economic goals. Instead we will just remain as that country with potential to be this and that, while we continue to lose the things that make us a proud and sovereign nation. Nigerians do not need much Foreign investment to experience exponential economic growth, we just need the proper environment to do it our own damn selves. Asking for FDI at every turn is the lazy mans road, and is not sustainable in the long run.

In regards to lack of infrastructure and visionary leadership, We Common Nigerian folk are as much to blame as our so called leaders in what we call a government. (well maybe a bit less than the leaders but there is still enough to go round).  
The truth is we as Citizens do not demand governance of a high standard from our leaders, instead we just accept whatever they give us. We are just as fearful of the truth as our leaders.

If I let you bully me today, why shouldn't you think you can get away with bullying me tomorrow?  

Thank you very much guys.  You know, one thing that never ceases to amaze me is the capacity for self delusion and lack of common sense by our leaders.  How can you attract investment, not to talk about developing a competitive economy, without good infrastructure, law and order, and a skilled work force.  Those factors are what separates a country like Nigeria, from one like Singapore.   Our leaders are like proprietors of a run down hotel with broken windows and a leaking roof, expecting the same place to be full of guests paying top dollar!    It would be funny if it were not so sad for us as a country.   I recently read a US State Department report on the Singapore economy, and the following paragraph caught my eye and showed me that our leaders have a long way to go, and they have not even started on the journey!

Singapore's largely corruption-free government, skilled work force, and advanced and efficient infrastructure have attracted investments from more than 7,000 multinational corporations from the United States, Japan, and Europe. Also present are 1,500 companies from China and another 1,500 from India. Foreign firms are found in almost all sectors of the economy. Multinational corporations account for more than two-thirds of manufacturing output and direct export sales, although certain services sectors remain dominated by government-linked companies.

The full report can be read on this link:   http://www.state.gov/r/pa/ei/bgn/2798.htm

If our leaders don't start taking steps to implement similar  changes to move  our country forward economically, Nigeria will remain not just a sleeping giant, but a comatose one, over-dependent on crude oil sales, the benefits of which have yet to be felt by the average Nigerian.

@ShipIt, I agree with you that this is what we should be demanding of our leaders, instead of glorifying their incompetence, and allowing them to con us with false and empty promises.

good

I still believe that its a wonderful news. I want to believe that they equally know the problem of power. But we can not stop the economy due to power outage, that have been with us for years. We need to plan ahead, when the power stabilizes then its will be added advantage.

Good Job Aganga keep it up, as in work the plan. Prof. Nnaji we are waiting for Power supply to drive this economy faster.

pipe dream

So Agaga has spoken. Has we bothered to ask how many Jobs will be created locally ? What is the mutiplier effect of this investments on the economy (like we saw with telecoms licences issued in 2001) ? What exactly is this investment being spend on - increase in long term  production capacity (as in the case of most telecom investments) or  short term investments (Like most in the Oil sector especially in the Downstream  & Mid stream: the investment by Zenon in 2007 or 2008 for "storage expansion" to facilitate diesel importation comes to mind here).

And for those who are talking about N16B in Delta State. I hope it will not be another White Elephant. You only need to look at other invesments by other states to understand what I mean:
Tinapa resort in Cross Rivers State was supposed to be an investment & tourist Mecca in Nigeria & West Africa, but sadly I dont think it was fully thought through, leaving the place empty & largely ignored. Others include the so called International Airport every state govt expecially in the niger delta seem to be embarking on (Delta, Akwa Ibom & lately Kwara come to mind). Have we bothered to ask how many commercial planes (except the pivate jets of the previlaged few) take off  and land on a daily basis to justify the huge (in some cases inexplicable) sums spent constructing & maintainaing this project.

Then there is the issue of how much of this investment will be lost due to corruption & poor infastructure. Why is it so difficult to build new refineries especially as other African countries (Niger, Chad, Sudan and of late Ghana) have proven that it does not take rocket sceince to do so, fix our roads, solve the power problem or equation now as various Govt have shown, build viable rail networks to reduce the pressure on road transport and its side effects etc. These will go a long way in reducing the cost of doing Biz in this country and open the doors for even more investment.

Shame that when we Nigerians hear or read excepts & we just jump into conclusion both for and against.

Until we can collectively challenge the Govts at all levels constructively (devoid of ethnic, tribal & religious sentiments- I know say dat one hard) on their policies, statements & actions, Our leaders will continue to misrule us, steal our collective wealth and laugh at us while they watch us argue who is right or wrong.

9jafreak

Your statment is well said!!!

honeric01:

Paper government, please what's new here?

My view precisely